The Effect of Organizational Culture on the Performance of Employees in Addis Ababa City Administration: The Case of Yeka Sub City

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Culture is not an initiative, but the enabler of all initiatives. Culture is like the wind. It is invisible; yet its effect can be seen and felt. It is the more profound level of fundamental assumptions and beliefs that are shared by individuals of an organization. The objective of this study was to look at the impact of organizational culture (clan culture, hierarchy culture, adhocracy culture and market culture) on the performance of employees at Yeka Sub City Administration. The study aspired to show the existing dominant culture at Yeka Sub City Administration and the relationship between organizational culture and employee performance. The study included a sample size of 311 employees. Data was collected using questionnaires, interviews, and document analysis. The collected data was analyzed using statistical tools like frequency, mean, standard deviation, Spearman’s rho coefficient and Multiple Regression. The major findings of this study are 1) the dominant organizational culture in the sub city is hierarchy culture, 2) employee performance at the sub city has positive relationship between clan culture, adhocracy culture, market culture and hierarchy culture and their correlation is statistically significant, 3) All other culture types except hierarchy culture have positive and significant effect on employee performance, while hierarchy culture has negative and significant effect on employee performance, 4) The study indicates that clan culture, with a beta value of β = 0.611 have significant and greater positive influence on employee performance, and 5) employee performance is higher at Yeka Sub City. Based on these findings and the conclusion, the sub city administration is recommended to apply the characteristics of clan culture and to enhance the advantages of the dominant hierarchical culture traits, to build and maintain positive culture and to work effectively and efficiently to improve the performance of its employees.



Organizational culture, Clan culture, Adhocracy culture